Mitchell pleads guilty to failing to pay taxes on time

State Rep. Harold Mitchell pleaded guilty Monday to two misdemeanor tax charges, though he will be allowed to keep his seat in the General Assembly.

By KIM KIMZEYkim.kimzey@shj.com

State Rep. Harold Mitchell pleaded guilty Monday to two misdemeanor tax charges, though he will be allowed to keep his seat in the General Assembly.Mitchell, 47, was originally charged with four counts of felony tax evasion. Had he been convicted, Mitchell faced up to 20 years in prison, a fine of $40,000 and would have lost his seat.The S.C. Attorney General’s Office dismissed two of those charges, and Mitchell pleaded guilty to two lesser charges of failure to pay taxes or file a return or keep records.Circuit Judge Lee S. Alford sentenced Mitchell to a year, suspended to three years’ probation, which can be reduced to six months if Mitchell pays $5,989.30 in back taxes. The charges carried a maximum sentence of a year in prison and a $10,000 fine for each count.Heather Savitz Weiss with the S.C. Attorney General’s Office also asked that Mitchell pay the cost of prosecuting the case — an amount that will be determined later.Mitchell’s attorney, Bruce Byrholdt, challenged the constitutionality of ordering Mitchell to pay the court costs.In September 2011, the S.C. Department of Revenue charged Mitchell with failing to file state income tax returns for the years 2005 through 2008.In a hearing in October 2011, DOR investigator Matt Wright said Mitchell only reported income from the General Assembly, but not income he received as executive director of ReGenesis and not campaign contributions for the 2005-2008 tax years. The Revenue Department claims during those tax years, Mitchell failed to file $274,457.30 in total income and reported that his total income for the four years was $49,746.30 in returns filed on April 22, 2009.In court, Weiss said Mitchell earned $76,530.01 in 2007 and $79,461.96 in 2008. Mitchell, she said, already paid a portion of the $8,460 owed, but still owes nearly $6,000.Byrholdt asked for a short probationary sentence, pointing out that Mitchell has no prior criminal record, is the father of three children and wants to continue helping people in House District 31 and across the state.After the ruling, Byrholdt said they were “very pleased with the sentence.” He said Mitchell looks forward to returning to public office and representing the community for years to come. Mitchell, D-Spartanburg, was re-elected to his House seat earlier this month without opposition. He has served in the House since 2005.Asked why Mitchell did not plead guilty sooner, Byrholdt said they had not received all the information pertaining to the case until Nov. 16.“This was a jigsaw,” Byrholdt said. He said there were 5,000 pages of documents, and he blamed accounting methods at ReGenesis for the errors in income reporting.Mitchell was suspended from office in January after a state grand jury handed down four felony charges of tax evasion, leaving the 17,000 people in his district with no voice in the General Assembly last term.Charles Reid, clerk of the state House, said Mitchell’s suspension has been lifted, and the lawmaker will be reinstated with back pay. Mitchell will be able to attend the organizational session set for Dec. 4.On Monday, benches in the courtroom were filled with Mitchell’s supporters. Afterward, several people embraced the lawmaker before he and Byrholdt crossed the street and headed to the probation and parole office.“I want to thank (supporters) for their prayers,” Mitchell said after the hearing.The lawmaker said people of different races and political parties helped him, including a woman who often purchased groceries for his family as a way to show her gratitude for ReGenesis Health Care.“The support the community gave me says a lot about Spartanburg,” Mitchell said.Mitchell previously said he thought the charges against him stemmed from a politically motivated “witch hunt.”He said he was angered when the process started. “I do want to thank my enemies for getting me on my knees and strengthening my faith,” Mitchell said after the verdict.He said the last 15 months have been an eye-opening experience that has developed his character.Mitchell said someone told him that “the difference between a stepping stone and stumbling block is where you place your foot.”He considers the suspension and experience a “stepping stone.”Mitchell said he is “excited” to return to office. Health care, the economy and examining the grand jury process are among his top priorities.Mitchell has continued to hear from constituents during his suspension. He can relate more to those who financially struggle and people without health insurance. He was suspended without pay and said his health insurance also was suspended.“I’m just glad we are where we are now so we can move forward,” Mitchell said.